bucks_business plan finish

8/6/2019 BUCKS_Business Plan Finish

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Executive SummaryBUCKS Company, located on Tutorial 2B, 2nd floor SBM-ITB building, is established on

August 2009 as a retail company. BUCKS Company is a short-term company that focusesin

the business venture of technological-creative interior industry. The added-value products

of

BUCKS Company are alphabetical clock, classic bed sheet, and unique doormats.

Alphabetical clock is a high performing techonology time-indicator device, with premium

quality and minimalist design and fashionable style, suits to decorate bedroom, living

room,

hotels, apartments, and even hotels. Another is Classic Bed sheet set including eight parts

of

bed sheets for aesthetics bedrooms, with best-quality King Koil and elegant color choices,

with significantly lower price. Doormats, have two types; slipper doormat, a comfort towel

mat placed inside houses with a pair of slippers, and unique-doormat, a doormat with

various and choice able exciting designs that attracts people inside or outside rooms.

As a visionary and inspiring company, BUCKS Company determined the companys

vision to become the Most Valuable Company (MVC) in Integrative Business Experience, by

achieving best profit and biggest human-social benefits. It will be achieved by

implementing

companys mission of understanding & answering market challenges, needs & wants and

satisfying all stakeholders starting from members, SBM-ITB, suppliers, creditors and

consumers by applying best business-management skills and integrity, and corporate

social

responsibility as an implementation of business ethics.

BUCKS Company and the mass market are living in a very digitalized world. People

has neverending expectations to the latest sophisticated technology,especially the

technology that applies directly to lifes comfort moments. On the other hand, peoples

basic needs and wants of creative and aesthetic items are unavoidable. With human

mostly

spend their time inside their own room, beautiful and functional interior products are

perceived to be very important. Answering this environments demand, BUCKS Company

targets specific segments which are, teenagers with unique & aesthetic lifestyle, young

executives with high sensitivity to technological items, women & housewives with

demands

to high-quality and fashionable products, from B to A social economic class. The primary


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marketing objective is to achieve X%, X%, and X% of market share in Jakarta & Bandung

for

Alphabetical Clock, Classic Bed Sheet, and both Doormats at IBE II.

BUCKS Company is led by Prawedhi Sosrodimulyo as Chief Executive Officer and two

corporate secretaries to assist and manage informations. Then, followed by Muhammad

Ajie

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Santika as Chief Marketing Officer, Muhammad Ichsan Febrian as Chief Operation Officer,

and Alida Nur Sakinah as Chief Finance Officer. BUCKS Company has a total of 34

members

with various characters and potentials to be implemented in business.

BUCKS Company expects to earn 402,400,000 IDR of total revenue from sales of 44

alphabetical clocks, 222 doormats, and 98 classic bed sheet sets, by borrowing 29,697,500

IDR from CIMB Niaga Bank as four-month l oan. BUCKS Company foresee sales of

100,000,000 IDR for first month, another 100,000,000 IDR for second, 82,000,000 IDR for

third one, and 120,400,000 IDR for last month. With 54.07% Net Profit Margin, BUCKS

Company projects profit of51,207,785 IDR from first month, 55,087,785 IDR from

second, 45,047,785 IDR from third, and 66,217,785 IDR from last month, or total of217,561,140 IDR net profit. It resolves the break even point by 86,096,388 IDR within

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days. BUCKS Company does not anticipate any financial problem.


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Table of ContentsExecutiveSummary.....................................................................................................................

.......... 1Table of

Contents......................................................................................................................

.............. 3

CHAPTER

I ..................................................................................................................................

............... 5

Company

Description ................................................................................................................. 6

I.1 Company

Profile ........................................................................................................ 6

I.2 Company

Background............................................................................................ 6

I.3 Companys Vision, Mission,

Goals................................................................... 7

I.4 Corporate

Management ........................................................................................ 8

I.5 Consultant ............................................................................................

................. 10

CHAPTER

II..................................................................................................................................

........... 11

Product

Description ...........................................................................................................

...... 12

II.1 Alphabetical

Clock............................................................................................... 12

II.2 Classic Bed Sheet

Set........................................................................................... 13

II.3

Doormats......................................................................................................

............. 15

CHAPTER

III ................................................................................................................................


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........... 17

Marketing

Description ...........................................................................................................

. 18

III.1 Market

Analysis................................................................................................... 18

CHAPTER

IV ........................................................................................................................................... 27

Marketing Strategies and

Sales ........................................................................................... 28

IV.1 SWOT

Analysis......................................................................................................

28

IV.2 Pricing

Strategy ...................................................................................................30

IV.3 Distribution

Channel ........................................................................................ 30

IV.4 Promotion & Advertisement

Strategy ................................................... 30

IV.5 Sales

Strategy .......................................................................................................

. 32

IV.6 Sales Program & Issues per

month ......................................................... 33

CHAPTER

V .................................................................................................................................

............ 34

Operations ...........................................................................................................

......................... 35

V.1 Facilities &

Equipment...................................................................................... 35

V.2

Production ...................................................................................................

............. 36

V.3

Inventory .....................................................................................................

.............. 40

CHAPTER

VI ................................................................................................................................

........... 42

Finance ................................................................................................................

........................... 43


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VI.1 Source and Use of

Fund................................................................................... 43

VI.2 Sales

Forecast .......................................................................................................

44

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VI.3 Projected IncomeStatement ....................................................................... 45

VI.4 Projected Balance

Sheet................................................................................. 45

VI.5 SensitivityAnalysis ........................................................................................... 46

VI.6

Ratios ...........................................................................................................

.............. 47

VI.7 Payback Period and Break Even

Analysis........................................... 47

REFERENCES ..............................................................................................................

........................... 49

APPENDIX ...................................................................................................................

............................ 50


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CHAPTER ICompany Description

This chapter describes the company profile, company background, companys

visions, missions, and goals; corporate management and for the last it lists the

companys consultant.

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Company Description

BUCKS Company is established on August 2009. It is a short-term companyrunning in creative interior industry. BUCKS Company sells unique and

aesthetical products, which are alphabetical clocks, bed sheet sets, and

doormats in 4 months period given by IBE 2. The companys sales period will

start effectively on February 2010 and aim to enter market in Bandung, Jakarta,

and nearby cities. Companys start-up capital will be covered by loan from CIMB

Niaga Bank.

I.1 Company Profile

Name

Head Office

Phone

E-mail

: BUCKS Company

B Best

U Unique

C Classy

K Kindred

S - Sublime

: Tutorial 2B, 2ndfloor SBM-ITB building

Jl. Ganesha 10, Bandung 40132

: +6281809101991 / +6285692577135

: [email protected]

I.2 Company BackgroundBUCKS Company is formed to fulfill one of the mandatory requirement of one of the

subjects in SBM-ITB which is Integrative Business Experience (IBE), a subject where the

second year students of SBM-ITB must create a business and run it. Consist of 35

students, which grouped in one tutorial class of 2B, BUCKS Company was born. BUCKS

Company is one of the five companies in the 5th year of IBEs execution in SBM-ITBs

history. The idea of the companys products was based on group brainstorming, while

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mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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the potential products were decided by the result of previous researches and

deliberation.

I.3 Companys Vision, Mission, Goals

I.3.1

I.3.2

Vision

To be the Most Valuable Company in SBM-ITB IBE with highest profitand

biggest benefit.

The Companys Mission

1. Becoming a high integrity and trusted business institution.

2. Building, developing, and maintaining business knowledge, skills, and ethics

of all businesspersons.

3. Managing teamwork, spirit, and motivation of all business players.

4. Unity, equality and openness within as basis of business interaction.

5. Building a dynamic and enjoyable working environment.

6. Managing valuable customer satisfaction and relationship, through

delivering the best experience.

7. Achieving the best marketable customer solution, this results in best profit.

8. Maintaining long-term valuable relationship with all stakeholders, including

suppliers, creditors, academicians, etc.

I.3.3 The Companys Value

1. We conduct our business in ethical manner.

2. We respect and support each other.

3. We are committed to excellence in everything we do.

I.3.4 The Companys Target & Goals

1. Achieving a minimum profit of 200 million rupiahs after IBE finished.

2. Fulfilling all milestones on time with best quality.

3. Maintains teamwork, motivation, and spirit every time until IBE finished.

4. Receives the most positive feedbacks from all customers and society.


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5. Clear and high-quality relationship with all inside and outside stakeholders.

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I.4 Corporate Management

Chart I.4 Organizational Structure

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I.4.1 Key Personnel and Board of Directors

a. Chief ExecutiveOfficer

: Responsible for actuating and evaluating

companys progress, performance, and

governance system.

b. Corporate Secretary

c. Chief MarketingOfficer

d. Chief OperationOfficer

e. Chief Finance Officer

: Responsible for managing each information and

database, from business plans to members

data and meeting notes.

: Responsible for customer relationship by

delivering best values and implementing

sales promotion strategies.

: Responsible for organizing and controlling whole

production processes, including inventory

and quality maintain.

: Responsible for managing cash flows, book-

keeping, and financial projection analysis.

1.4.2 Management System

BUCKS Company implements the simplest system of organizational

management design. It is a functional departmentalization (marketing-operation-

finance), decentralized (decision-making are based on deliberation within all group

members), and organic organization with low formalization. This system is chosen

because BUCKS Company is still in learning of business experience and it is the

most

suitable one to the company members composition.

In this organizational system, company has one rule in information flow

system. Chief Executive Officer directly manages and controls three-business

functions leader (COO, CMO, and CFO). All flows of information must be from those


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3 persons. Applied also to all other member and staffs, they must firstly coordinate

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with their chiefs. Since members are in academic business learning environment,

management expects to have full-member deliberation in all decision-making

process. Except for some sensitive problem, sometimes CEO must decide and solve

it himself.

I.5 Consultant

SBM ITB Lecturer

Ir. Leo Aldianto MBA, Dwi Larso Ph.D, Sonny Rustiadi, Bambang

Rudito, Reza Anshari, Arson Aliludin, Utomo Sarjono Putro, Togar M.

Simatupang

SBM ITB Tutor

Tita Januardi Subandi, R. Bayuningrat H, Bob Situmorang, Arief W.

Kautsar, Agustina Ciptarahayu

CIMB Niaga

Sandra Heliola

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CHAPTER IIProduct Description

This chapter describes the description of each product such as the size, material, shape,and

value.

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Product Description

II.1 Alphabetical Clock

Figure II.1a Alphabetical Clock Figure II.1b Alphabetical Clock

Nowadays, clock becomes not only as an instrument of time indicator, but also used

for interior decoration. Alphabetical Clock is a time indicator, which does not use

conventional clock needle to point the numbers (analog) nor use the usual digital

model.

It uses letters to state the time in the form of sentences, built by sophisticated

technology and the latest minimalist design. Alphabetical Clock is a highly useful

gadget

with a strong touch of fashion, suitable for decorating bedroom, living room, offices,

apartments, and hotels.

II.1.1 Size

This products dimension is equilateral to 450 mm, suitable for both wall and table

installation. The character height (the size alphabet as the time indicator) is 20 mm,

just

about the right size of standard visibility. BUCKS Company equips the wall mounted

hanger and desk stand as part of the product, which weighs 3.5 kg.

II.1.2 Shape


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Alphabetical clock shape is equilateral in shape, and layered by polished acrylic.

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II.1.3 Material

The material of the Alphabetical Clock is resin-impregnated wood which hardness is

improved by the resin substance that layers the wood fibers. It is also moisture

resistant

and durable. Generally, this product uses beautiful and elegant materials.

II.1.4 Value

The value that BUCKS Company offers to customers is to fulfill their needs and

wants in owning instrument indicating time with sophisticated technology. It also

can provide the consumer with sense of pride from owning such a gadget with latest

technological development. Furthermore, the design that is offered to customer is

very simple and yet unique, which does not use conventional clock needle to point

the numbers (analog) nor use the usual digital model. It uses letters to state the

time

in the form of sentences. There are several things that will support the value of

Alphabetical Clock:

1. Using letters to state the time in the form of a sentence, not like the other clock thatshow the time with numbers.

2. Combines art and functionality.

3. Can be used for interior decoration.

4. High quality clock with sophisticated technology.

5. There is magic sensation from the light that glows on its surface.

II.2 Classic Bed Sheet Set

Figure II.2 Classic Bed Sheet Set


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Classic Bed sheet set consists of eight items in one packaging: one bed sheet, one

bedcover, two pillow cases, two long pillow cases, and two little decoration pillows.

Alternative buying can also be one bed sheet and four pillowcases. This bed sheet set is

made from selected, high quality fabric that is King Koil (the best in its class with the

smoothest and most durable kind of cotton) available in various elegant color choices.

Compare to similar item offered by leading competitors, our product is much lower in

price and provide just as high in quality. This is suitable for beautifying and adding

value

to interior design in bedrooms.

II.2.1 Size

Classic Bed Sheet Set is available in two different sizes: king size and queen size.

Based on the fact that height of beds and thickness of mattress vary one from another,

the purchase is designed made-to-order in terms of those particular sizes.

II.2.2 Material


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The fabric is the premium King Koil type, which is widely known as the silky

smoothest and most durable fabric for bed sheets (colors are not easy to be faded). For

every ordering and purchasing, the combination of colors is chosen by costumers

according to their personal tastes.

II.2.3 Value

This Classic Bed Sheet Sets offer point of sales to customer as in giving them the

highest rate of comfortableness and sense of sophistication due to its classical and

majestic design. By giving the customer the chance to choose the hand made design

and

fabric colors, we therefore provide some added value that will differentiate us from

other existing players in the business. Those aforementioned key values are completed

by relatively lower price.

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II.3 Doormats

Figure II.3a Slippery Doormat

Figure II.3b Unique-DesignedDoormat

Figure II.3c Unique-Designed Doormat

There are two types of different doormats, slipper doormat and unique-designed

doormat. Slipper doormat has high functionality because it attaches a pair of slippers.

Slipper doormat using high quality towel based material so the customer feels comfort

when step on it. Slipper doormat has a simple design and suitable to place inside the

house. The pair of slippers is very comfortable for feet and it can be taken off from the

doormat so the doormat has two functions in one item.

Unique-designed doormat is available in various designs. BUCKS Company offers a

lot of attractive and unique designs that can be chosen by the customers taste. It can

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placed inside or outside the room. Unique-designed doormat is suitable for decorating

bedroom, living room, offices, apartments, and hotels.

II.3.1 Size

The size of slipper doormat is 60 x 40 cm with all size slippers that patch with the

doormat. The size of unique-designed is 70 x 50 cm with various cutting based on the

design.

II.3.2 ShapeAll the shape of doormat basically is rectangular. For unique-designed doormat the

shape is based on the design.

II.3.3 Material

Slippery doormats are towels which are comfortable to step on it; and unique-

designed are using acrylics which are durability and fancy looking.

II.3.4 Value

The slipper doormat has values such as high functionality (to keep the feet dry and

clean, comes with a pair of slippers that will make the feet remain clean) and trendy

and

out of the box design.

Unique-designed doormat, however gives the costumer the joy of owning one of a

kind design mat with affordable price.


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CHAPTER III

Marketing DescriptionThis chapter describes the market analysis based on the industry and environmentanalysis;

market segment, target market, market size and competitors.

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Marketing Description

III.1 Market AnalysisBucks Company is going to launch three products, which are Alphabetical Clock,

Classic Bed Sheet set, and Doormat.

The primary marketing objective is to achieve the sales target forecasted by BUCKS

Company in the first four months of 2010. To achieve that sales target, Bucks Company

has

set marketing strategies to accomplish the target markets sales with, from 58 potential

buyers of Alphabetical Clock, 130 potential buyers of classic bed sheet, and 297 potential

buyers of doormats.

To achieve companys goal, Bucks Company has made Marketing Analysis for each

product. The marketing analysis contain of current market industry and environment,

market segmentation, target market, positioning statement, market needs & demands,

market size & share, market trends, competitors, and marketing strategy.

III.1.2 Industry & Environment Analysis

III.1.2.1 Industry Growth and Trend

The presence of alphabetical clock will become the main power to face th

challenge in the market growth and trend. This particular product is

unexceptionally innovative and creative by its own design.

Creative industry sure is a challenging and interesting business, especially in

Indonesia. From 2002 until 2008, its small and medium business growth was

stable at 6.3 percent against the national gross domestic product (GDP), and

has a 7 percent of total export value on 2006. Those contributions are from

fashion, craft, pure design and art, music, film, advertisement, and

interactive performance art. On West Java, creative industry specifically

accounts for 7.82 percent of regional gross domestic product (RGDP) or

approximately 20 trillion IDR and at 2008 it had a 4 percent margin of

industrial growth.

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On the other hand, Digital industrys growth was responded positively by

many Indonesian government officers. They said that most business player

in this industry must be bright teenagers and young executives. The

government hoped these entrepreneurs could provide opportunities for job-

seeker and help decrease the poverty level in Indonesia even with the fact of

global financial crisis and the dropping of clock industry for about 6.25

percent. Shinta Dhanuwardoyo, CEO of PT Bubu Kreasi Perdana,

optimistically predict the growth of digital industry by 100 percent from mid-

April until end of 2010.

These factors, combined with humans basic expectations to creativity and

art, along with perceived value of technology, the mix of digital industry and

creative industry becomes one of the main opportunity for business. BUCKS

Company pursues and maximizes this opportunity to develop a profitable

business venture.

III.1.2.2 Competitive Environment

BUCKS Companys competitors are numerous and vary, starting from itssubstitute products, which are normal-standard clocks. Many competitive

domestic and foreign producers already enter it. Moreover, another

technology-based clock had recently exists in Indonesian market. BUCKS

overcome this challenge by confidently offering similar products quality but

with significantly lower price.

BUCKS Companys products have a very unique design appearance and

characteristics, with premium material and quality system, along with itselegant package. BUCKS Company has many alphabetical clocks stock

capacity, with delivery, guarantee, and after-sales service. It shows some

luxuriousness of time in peoples room interior design. With peoples

demands to high-technology product, this item will make BUCKS Company

business venture smoother and actionable.

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III.1.2.3 Barriers to Entry

BUCKS Companys Alphabet Clock is a premium high quality technology

product, with LED array and polished acrylic. Its unique and elegant working

system results in relatively high production cost. BUCKS barriers to entry are

Indonesians perspective of combining technology and fashionable yet

functional interior items. It is described, as peoples top of mind is that all

clocks are only meant to be functional, that clock with pin and numbers is

enough. People tend to choose standard clock and insensitive than its

possible fashion and technology added values.

III.1.2.4 Long-Term Chance

Indonesian existing and future market in technology and creative interior are

always transforming. With peoples increasing expectation into creative

interior and technology, BUCKS Company will face the opportunity to seize

market share in this challenging industry. Along with members power,

passion, and abilities, BUCKS Company believes the sustainable and

profitability in answering this market challenge.

III.1.3 Market Segment

III.1.3.1 Alphabetical Clock

Students of several universities in Jakarta, Bandung and nearest cities

like: Bandung Institute of Technology

,

PadjajaranUniversity,

Parahyangan University, and University of Indonesia which have

medium to high social economic class and eager to try new innovation.

Technology geeks who always willing to buy new innovation of

technology products.

Relations of companys member who are willing to buy new innovation

of unique clock.

People who prefer limited edition product than mass production


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product.

III.1.3.2 Bed Sheet Set

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Female, young married people who are interested in high-class

bedsheet with pleasant quality and classic design.

People who thinks quality is the number one priority but not prefer to

pay in high price.

Women, housewives who incorporated in a gathering (arisan and

pengajian) and like to buy new products with lower price than market

price (in the same quality).

III.1.3.3 Doormat

Students of several universities in Jakarta, Bandung, and nearest cities

like: Bandung Institute of Technology

,

PadjajaranUniversity,

Parahyangan University, and University of Indonesia who are interested

in buying and trying creative unique products.

People who collect unique stuffs, and eager to make their customizedoormat.

Relations of Bucks Company members who willing to buy unique

doormat.

People prefer limited edition product than mass production product.


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Relationship Amount

Family 21

Fiends 37

III.1.4 Target Market


For the actual target market, BUCKS Companys target market are people

living in Jakarta and Bandung, the people who concern about new-

technology applied on a breakthrough product with their status begin fromB to A social economic.

Currently, BUCKS Company has potential buyers from members relations

who will definitely buy Alphabetical Clock:

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Relationship Amount

Family 59

Friends 71

TOTAL 130

Relationship Amount

Family 73

Friends 224

TOTAL 297

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TOTAL 58

Table III.1.4.1 Alphabetical Clock

III.1.4.2 Classic Bed Sheet Set

For the actual target market, BUCKS Company target market are married

women living in Jakarta and Bandung, the people who like classic designs

applied in bedshee,t with high ability in purchasing secondary needs.


who will definitely buy the Classic Bed Sheet Set:

Table III.1.4.2 Classic Bed Sheet Set

III.1.4.3 Doormat

For the actual target market, BUCKS Companys target market are university

students in Jakarta, Bandung, and nereast cities; the people who like unique

designs applied on doormat with the high ability in purchasing secondary

needs.


who will definitely buy our Doormat:

Table III.1.4.3 Doormat

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III.1.5 Positioning Statement


To people who concern about new-technology applied on a

breakthrough product with their status from B to A social economic, BUCKS

Company presents a sophisticated alphabetical clock that creatively shows

you the time with a unique way. BUCKS Company can give the customer

some magic sensation from the light that glows on its surface, so they will

not have difficulty to see the time in the dark.


To married women who like classic designs applied on bedsheet with

high ability in purchasing secondary needs, BUCKS Company offers number

one bedsheet in quality with competitive price. BUCKS Company proposes

the costumers a new sensation of sleeping in comfortable sheets.BUCKS

Company offers bed sheet, complete with its bedcover, pillowcases, long-

pillow cases, and decorative pillowcases.

III.1.5.3 Doormat

To people who like unique designs applied on doormat with high

ability in purchasing secondary needs, BUCKS Company offers a new

innovation of interesting doormat that combines tenderness and modernity.

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No. Universitas

JumlahMahasiswa

MarketSize

1 ITB 17865 2858

2 Unpad 30036 4806

3 Unpar 10000 1600

4 Maranatha

9666 1547

5 UI 35000 5600

6 Binus 23000 3680

7 Trisakti 30000 4800

8 LSPR 5017 803

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III.1.6 Market Size


Alphabetical Clock did not use market size because BUCKS Company knows

the potential buyers.


Table III.1.7.2 Market Size Classic Bed Sheet Set

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No. Universitas

JumlahMahasiswa

MarketSize

1 ITB 17865 8933

2 Unpad 30036 15018

3 Unpar 10000 5000

4 Maranatha

9666 4833

5 UI 35000 17500

6 Binus 23000 1150

07 Trisakti 30000 1500

08 LSPR 5017 2509

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Graphic III.1.7.2 Market Size Classic Bed Sheet Set

The market size of bed sheet is taken from 16% of the total students in one

university by categorizing them as innovator and early adaptor

III.1.6.3 Doormat

Table III.1.6.3 Market Size Doormat

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Graphic III.1.6.3 Market Size Doormat

The market size of doormat is taken from 50% of the total students in one universityby categorizing them as innovator, early adaptor and early majority.

III.1.7 Competitors


The product is very unique and rare in Indonesia, so direct competition

would not occur.


Direct

a. King Koil Gallery

b. Pasar Baru seller who sells bed sheets with the

lowest price

III.1.7.3 Doormat

Direct

a. Carrefour Hypermart

b. Jakarta Carpet

c. Harmony Carpetd. Online Store (http://kaskus.us)

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CHAPTER IV

Marketing Strategiesand

SalesThis chapter describes the SWOT analysis of each product, pricing strategy, distribution

channel, promotion and advertisement strategy, sales strategy, sales program and issue

per

month. For the last, it also explain the after-sales service and control.


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Marketing Strategies and Sales

IV.1 SWOT AnalysisIV.1.1 Alphabetical Clock

Strength

This product have a unique design, high quality and high technology

product

Weakness

The cost is too high (about IDR 5 million)

The Alphabet clock is only showing the time in 5 minutes interval

People will spent longer time to see the time at the alphabet clock

because it is showing the time by words not by analogue or digital

display

Opportunity

This product is a new innovation and is still sold limitedly

Threat

There are many store or venture selling the usual clock with the same

function and with more cheaper price than the alphabet clock

The consumer tend to buy the clock by considering its function rather


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than its design

IV.1.2 Classic Bedsheet

Strength

High quality product.

Best material which is king koil.

Classy design.

Low cost than other same kind of product


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Weakness

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It is sold in a set including the bolster, pillow holster, the blanket and the

bed sheet. The costumer cannot buy only the blanket or only the pillow

holster separately

Not customizable

We did not provide single size,

so

the customer only has 2 choices,

which are king and queen.

Opportunity

Household living things which still has stable demand in industry

There are a substantial number of target

Threat

There are lots of bed sheet store

There are lots of bed sheet competitors

The costumer tend to buy bed sheets in well-known store and product

IV.1.3 Doormat

Strength

It has unique model and customizable design. It includes slippery

sandals, so that it can be used not only for doormat only

This product is washable

There are various color, shape, and model


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Weakness

The production cost is higher than common keset


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Opportunity

Bucks is the only venture who sell this product


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Threat

There are many stores that sell commonkeset with cheaperprice

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Costumer tend to buy keset by considering its function only rather

than its design

IV.2 Pricing StrategyIV.2.1 Alphabetical Clock

Alphabetical clock will be released at IDR 5.000.000. This price indicates that

BUCKS Company is using high and new technology to create this clock. This product

is still rarely seen in the world market, especially in Indonesia.

IV.2.2 Classic Bed Sheet Set

Bed sheet will be released with the price depends on the size. For the King

size, the price is IDR 1.500.000 and for the Queen size the price is IDR

1.300.000.This

price is very competitive and for the product that has high quality like this, this price

is lower than the other bed sheet with same quality.

IV.2.3 Doormat

Doormat will be produced in two types: the ones with slippers and the one

with unique design. For the ones with slippers, the price will be released at

IDR.100.000, and for the unique and material will be released at IDR 300.000.

IV.3 Distribution ChannelThe entire product is basically a household product, especially for Doormat

and Classic Bed Sheet Set. For those two, BUCKS Company will enter the market

through apartment developer, town house developer, and conventional housing.The other method is using pesonal selling startegies and direct selling method so

the

product is easier to deliver ( if outside Bandung can be delivered by TIKI).

IV.4 Promotion & Advertisement StrategyIV.4.1 Flyer and catalogue

BUCKS Company will continuously spread flyers in potential area so that

people will be more aware with our product and make them willing to buy. The

catalogue will be only spread in the place where high potential buyers are located,

especially during presentation.


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Website domain (*) Rp. 500.000,00

4 Banner @ Rp135.000 (**)

Rp. 565.000,00

100 A3 Poster @ Rp2.000

Rp.200.000,00

1500 Flyer @ Rp 500 Rp.750.000,00

1000 Catalogue Rp. 1.200.000,00

200 Sticker @ Rp1.000

Rp. 200.000,00

10 Proposal @Rp25.000

Rp 250.000,00

Transportation Cost(***)

Rp 1.600.000

Total Rp. 5.150.000,00

31

IV.4.2 Website

BUCKS Companys website will be created with classy design (sleek and easy

to browse) and contains companys profile, product specification and explanation,

product price, online selling (by email and phone), and how to contact the company.

IV.4.3 Sales team

Bucks Company will create three teams for sales. Each team will be led by

people who are already competent and experienced in selling. Each team will have

specific sales targets, so that every sales team could give equal contribution. First

and second team will focus on presentation and sales. The third team will be a

backup for supporting the sales and promoting.

IV.4.4 Internet

BUCKS Company will also sell and promote the product by using social

network media on the Internet like Kaskus, Facebook, Plurk, twitter, etc.

IV.4.5 Marketing Expenses

Table IV.1.5.5 Promotional Budget

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(*) Website; used IDR 500,000 to purchase internet domain

(**) Banners; print 4 items (company banner and 3 for each product)

(***) Transportation; used for fuels and toll fee to and from Jakarta & Bandung

IV.5 Sales StrategyBUCKS Company will have 3 sales teams that will be led by people who are

already experienced and competent in selling. BUCKS Company will use a lot of

personal selling and direct method to sell the products. BUCKS Company will always

making a list consisting of potential buyers and it will be updated each week for

easier selling of the products.

For Alphabetical Clock, BUCKS Company uses directselling and emotional

approach selling style for the potential buyers. BUCKS Company will also use

presentations method and do consistent followups until the potential buyer

purchase the products. Other than those methods, BUCKS Company will also

concentrate on giving proposals to certain companies for replacing their ordinary

clock with Alphabetical Clock, with the benefits of the added value of having their

companys logo on the Alphabetical clock and with lower price than the Alphabetical

clock that will be sold in the market. Then, after prioritizing above strategy, BUCKS

will expand the selling to the market outside the list of potential buyers.

For ClassBest, BUCKS Company will use different direct selling method by

presenting products to communal or specific group of people, especially housewives

at arisan or pengajian occasion.

For Doormats, BUCKS Company will approach the market by direct

marketing, using catalogues and brochures to target market and potential buyers.

Similar to ClassBest, BUCKS will use presentation method to groups of people at

certain occasion and events.

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IV.6 Sales Program & Issues per monthFebruary

In February, the target sales will be about 25% sales from the overall targetquantity.

There will be special design for doormat products on Valentines Day. BUCKS

Company will also create special design of alphabetical clock for the auction of SBM

ITB Golf tournament. Sales methods that will be used are personal selling and direct

sales. Personal selling method is to offer the products to family, friends and close

relations.

March

The target sales will be the same as last month which is 25% sales from theproducts

target sales. BUCKS Company will maintain the spirit and performance in this

month.

April

Target sales in this month are 20% sales from the products target sales. The

company target sales will decreases because of the midterm test in this month for

the entire companys members. All potential buyers of Alphabetical Clock will have

been approached and follow-upped.

May

Bucks Company increases the target sales to 30% sales from all the products

because it will be the last month for selling the products.

IV.7 After-Sales Service & Control

BUCKS Company will provide guarantees for each product, especially for

alphabetical clock, it has six-month guaranteed. If the clock breaks or malfunctions

after IBE, the customers can still contact BUCKS Company to repair the product.


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CHAPTER V

OperationsThis chapter describes the whole operations processes, including production plot,

inventory management, and quality control, plus companys facilities andequipments.

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35

OperationsV.1 Facilities & Equipment

For operational needs BUCKS Company has the following:

Computer, to create and store computer-based documents Place, to store any inventories and supplies

Cars, for operational necessity, for example deliver products Website, e-mail and phone number to ease Bucks Company communication

with consumer, vendor, etc.

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V.2 Production

Orders Contracts

Market AnalysisCustomer Requirement

&Specifications

S c ra p

Production Design

(Draw of what tomake)

Production process

Packaging


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V.2 Flow Chart Operation

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V.2.1 Alphabetical Clock

V.2.1.1 General

Production process will start in January 2010. Vendors will process the raw

material while BUCKS Company will wrap the products. The advantages of

this product are that this clock is the first in Indonesia and the price is lower

than the other company outside Indonesia that produces this product.

V.2.1.2 Production Plot

The production process will take 7 to 10 days on order session. One order

session will have a minimum order of 25 alphabetical clocks. BUCKS

Company will have one time order session. Operation will pay the minimum

down payment on the beginning of the order, and then operation will pay

the rest of the cost in one month interval from the first payment.

- BUCKS order the products to the vendor.

- The vendor will process the product for 7 until 10 days.

- The products will use the selected materials.

- The products which have been produced will be packaged into a very

special designed box.

- Finally, operation will send the product back to marketing for delivering

the products to the customers.

V.2.1.3 Quality Control

Daily observation is needed in production process to oversee the quality of

the product, including on pre production, progress and post production

process. The measures are:

- Make sure the clocks LED working properly and the cable is not broken.

- Check every detail after production process, make sure there are no scratch

and stain.

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V.2.2 Classic Bed Sheet Set

V.2.2.1 General

Production process will start in January 2010 until May 2010 depends on the

order from the customer. The bed sheet will be produced based on our own

design. The design of this product is made by BUCKS Company which will be

elegant and comfortable. The price of this bed sheet is more competitive than

other companies.

V.2.2.2 Production Plot

The production process will take 7 days or a week for one order session. For

one order session, the vendor is capable to produce 10 bed sheets and if there

are any additional orders from the customer, the vendor can make 2 bed

sheets per day. BUCKS Company will produce 5 bed sheets for the first week

of IBE and will always maintain 10 stock of bed sheet for every next week. If

the orders from the customer exceed BUCKS stock, BUCKS will produce the

bed sheet according to the markets orders. BUCKS will pay the down payment

when the order is issued and pay the rest of the cost every end of month.


- The vendor will process the product for 7 day

- The products will use the selected materials.



- Finally, operation will send the product back to marketing for delivering

the products to the customers.

V.2.2.3 Quality Control

Daily observation is needed in production process to oversee the quality of

the product, including on pre production, progress and postproduction

process, and the measures are:

-Check whether the product is built according to the spec

-Stain or smell check

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-Final check for irregularities

V.2.3 Doormat

V.2.3.1 General

BUCKS have two different types of doormat which are slipper doormat and

unique-design doormat. For the slipper doormat, the production process will

only in January 2010 as BUCKS will order for one time only. For the unique-

design doormat, the production process will start at January 2010 until May

2010. The vendor will produce the product with BUCKS design. Slipper doormat

will be produced with a great functional design and materials. The other

doormat has the same useful function yet equipped with sophisticated unique

design.

V.2.3.2 Slipper Doormat

V.2.3.2.1 Production Plot

The production process will take time 2 weeks to produce for one order

session. First, BUCKS will order the goods from the vendor and also pay

for the down payment for the first order. After the products are finished,

they will be packaged and finally, they will be sent to the marketing team.

Then, after a month BUCKS will pay the rest of the cost.


- Process will take time for 2 weeks.

- The vendor will produce the product using the selected materials.



- Finally, operation sends the product back to marketing to deliver the

products to the customer.

V.2.3.2.2 Quality Control

Daily observation is needed in production process to oversee the quality

of the product, including on pre production, progress and postproduction

process. The measures are:

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products will be monitored periodically and the stored products will be ready to be

delivered when an order from the customer is issued.

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42

CHAPTER VIFinance

This chapter describes the whole financial forecast, sales forecast, projected income

statement, projected balance sheet, sensitivity analysis, ratios, breakeven analysis,

and use of fund.

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FinanceTo start the business, Bucks Company will need fund in total of Rp29.697.500,00, and

is intended to acquire the fund from CIMB Niaga Bank loan. The use of the fund will

further be described in this chapter. This chapter also consists of some calculations to

see the business profitability, companys assets, and risks. However, first, the sales

forecast which is used in the rest of the calculations will be described.

VI.1 Source and Use of FundSource of Fund

Bank Loan

Use of Fund

Rp29.697.500

First Production

Alphabetical Clock

Keset Sendal

Doormat

Bedsheet King

Bedsheet Queen

Total

Operating Expense

Transportation Expense

General & Administrative

Expense:

Nota Penjualan

Stempel

Materai

Marketing Expense:

Banner

Poster

Flyer

Catalogue

Sticker

Website

Units

44

111

28

3

2

Down Payment

19,800,000

2,497,500

2,310,000

450,000

260,000

Rp25.317.500

500.000

100.000

80.000

60.000

540.000

200.000

750.000

1.200.000

200.000

500.000

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Proposal

Total

Total Use of Fund

250.000

Rp4.380.000

Rp29.697.500

Table VI.1 Source of Funds

The number of units for alphabetical clock and slipper doormat is actually the total

sales for the whole IBE activity. Due to the minimum order regulation from those

two products vendors (25 for clock and 100 for keset sendal), Bucks Company can

not minimize the units produced. For doormat, the first production will cover the

units required for sales in the first month. However, for Bedsheet, the first

production will only cover the first week sales as the method of the productiion is

based on order.

VI.2 Sales Forecast

Product

AlphabeticalClock

Keset Sendal

Doormat

Bedsheet King

Bedsheet Queen

February

1128

28

13

11

March

1128

28

13

11

April

922

22

11

9

May

1333

33

16

14

Total

44111

111

53

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Table VI.2 Sales Forecast

The sales flow of all products is based on 25:25:20:30 ratio in term of thepercentage

of the total sales. The decline and incline of the sales is estimated by assuming the

market and the sales force condition. Market saturation will cause the sales to

decline in the third month of sales activity. However, in the last month of IBE, all

sales force is expected to give their best effort to reach the companys target.

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VI.3 Projected Income StatementThe End of May 2010

Sales

Sales Returns & AllowancesNet Sales

less COGS

Gross Profit

less Operating Expenses

Operating Profit

Other Income

less Othe r Expense (Interest)

Net Profit

402,400,000

0402,400,000

178,430,000

223,970,000

47,920,000

176,050,000

42,633,950

1,122,810

217,561,140

Table VI.3 Projected Income Statement

According to the sales forecast, Bucks Company will get total Rp402,400,000 ofsales

revenue. Further description of the COGS and Operating Expenses is in the appendix

in the cash budgeting section. Salary expenses is included in the Operating

Expenses.

However, as the expense is actually not allowed to be taken, it goes to the Other

Income. The company will also get interest income that adds Other Income as it will

have a deposit for cash collateral. On the other hand, the company will be charged

the interest expense from bank loan. Substracting all costs from the sales revenue,

Bucks Company will get Rp217,561,140 of net profit.

VI.4 Projected Balance Sheet

Asset

Current Asset

Cash

Cash Collateral

Account Receivable

Inventory

Fixed Asset

Equipment

Depreciation on Equipment

Total Asset

May

247,258,640

29,697,500

0

0

0

0

Rp276,956,140


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Liabilities

45


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46

Bank Loan

Owner's Equity

29,697,500

Equity

Retained Earning

Total Liabilities and Owner Equity

29,697,500

217,561,140

276,956,140

Table VI.4 Projected Balance Sheet

This balance sheet describes the companys financial condition at the end of May,

which is the end of IBE activity. Account Receivable and Inventory is assumed to be

zero at the time. The company will have its products all sold and paid. There will

also be no equipment bought for the business.

VI.5 Sensitivity Analysis

Scenarios Pessimistic Most Likely Optimistic

Sales in Units

Alphabetical Clock

Keset Sendal

Doormat

Bedsheet King

Bedsheet Queen

29

74

74

35

30

44

111

111

53

45

58

148

148

70

60

Income Statements

Sales 266,100,000 402,400,000 532,200,000

Sales Returns &

Allowances

Net Sales

less COGSGross Profit

0

266,100,000

118,095,000

148,005,000

0

402,400,000

178,430,000

223,970,000

0

532,200,000

236,190,000

296,010,000

less Operating


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Expenses

Operating Profit

Other Income

(Salary)

less Other Expense

47,920,000

100,085,000

42,633,950

1,122,810

47,920,000

176,050,000

42,633,950

1,122,810

47,920,000

248,090,000

42,633,950

1,122,810

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Gross Profit Margin (%) 55.66

Operating Profit Margin 43.75

Net Profit Margin (%) 54.07

Times Interest Earned 156.79

Net Present Value 216,263,778

Internal Rate of Return 32%

Total Asset Turnover

47

(Interest)

Net Profit

Net Profit Margin

141,596,140

53.21

217,561,140

54.07

289,601,140

54.42

Table VI.5 Sensitivity Analysis

The optimistic sales scenario is estimated to be 25% more than the most likely

scenario, while the pessimistic is 25% less than the most likely. The optimistic

scenario is based on the assumption that the company will be able to reach almost

all of its target market. The net profit from the three scenarios are different in

numbers. However, the net profit margin (net profit compared to sales) seems to be

stabile.

VI.6 Ratios

Table VI.6 Ratios

The Operating profit margin is far below the gross and net profit margin as the

company has to record its salary expense. With the assumption of 6% discount rate,

BUCKS Company has positive net present value.

VI.7 Payback Period and Break Even Analysis

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Payback Period

Initial Investment 29,697,500

Operating Cash Flow

February51,207,785


76/90

March 55,087,785

April 45,047,785

May 66,217,785

Payback Period 16

Fixed Cost 47,920,0

00Total Variable Cost (%) 44.3

4Operating Break Even 86,096,3

88

48

Table VI.7.1 Payback Period

Bucks Company will get its initial investment back in 16 days.

Break Even Analysis

Table VI.7.2 Break Even Analysis

By getting more than Rp86,096,388, Bucks Company will earn profit.

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REFERENCES

Armstrong & Kotler. 2009. Marketing an Introduction 9th ed. USA: Pearson PrenticeHall.

Gitman, Lawrence. J. 2009.Principles of Managerial Finance 12th ed.USA : PearsonAddison Wesley.

http://www.entrepreneur.com(Clicked November 4th, 2009; 16.10 p.m. )

http://www.tempointeraktif.com(Clicked November 11th, 2009; 14.13 p.m. )

http://www.qlocktwo.com (Clicked September 2nd, 2009; 09.09 a.m.)

49
http://www.entrepreneur.com/http://www.tempointeraktif.com/http://www.qlocktwo.com/http://www.entrepreneur.com/http://www.tempointeraktif.com/http://www.qlocktwo.com/


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APPENDIX

Projected Income Statement per Month 2010

Projected Balance Sheet per Month 2010

February March April May

Asset

Current Asset

Cash

Cash CollateralAccount Receivable

Inventory

80,905,285

29,697,500

0

0

135,993,070

29,697,500

0

0

181,040,855

29,697,50

0

0

0

247,258,640

29,697,500

0

0

Fixed Asset

Equipment

Depreciation on Equipment

Total Asset

0

0

110,602,785

0

0

165,690,570

0

0

210,738,355

0

0

276,956,140

Liabilities


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Bank Loan 29,697,500 29,697,500 29,697,500 29,697,500


80/90

Income Statement February March April May

Sales 100,000,000

100,000,000

82,000,000

120,400,000

Sales Returns & Allowances

Net Sales 100,000,000

100,000,000

82,000,000

120,400,000

less COGS 44,280,0

00

44,280,0

00

36,320,0

00

53,550,0

00Gross Profit 55,720,0

0055,720,000

45,680,000

66,850,000

less Operating Expenses 14,890,000

11,010,000

11,010,000

11,010,000

Operating Profit 40,830,000

44,710,000

34,670,000

55,840,000

Other Income 10,658,488

10,658,488

10,658,488

10,658,488

less Other Expense (Interest) 280,702

280,702

280,702

280,702

Net Profit 51,207,785

55,087,785

45,047,785

66,217,785

Owner's Equity

50


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51

Equity

Retained Earning

Total Liabilities and Owner

Equity

29,697,500

51,207,785

110,602,785

29,697,500

106,295,570

165,690,570

29,697,500

151,343,355

210,738,355

29,697,500

217,561,140

276,956,140

Projected Statement of Cash Flow

Beginning February March April May

February

Operating Cash Flow

Net Income

Depreciation

Change in Account

Receivable

Change in Inventory

Change in prepaid expense

-

-

-

-

51,207,785

0

0

0

0

55,087,785

0

0

0

0

45,047,785

0

0

0

0

66,217,785

0

0

0

0

Change in Downpayment to

supplier- 0 0 0 0

Change in Downpayment to

customer0 0 0 0

Total Operating Cash Flow - 51,207,785 55,087,785 45,047,785 66,217,785

Cashflow from investing

activities

Purchase of equipment - 0 0 0 0

Total cashflow from investing

activities- 0 0 0 0

Cashflow from financing

activities

Bank Loan C ash Colla teral29,697,500


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697,500 0

0

0

0

0

0

0

0

Total cashflow from financing

activities

Net Cashflow

59,395,000

59,395,000

0

51,207,785

0

55,087,785

0

45,047,785

0

66,217,785

Cash Beginning0 59,395,000110,602,785 165,690,570

210,738,355


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Cash Ending 59,395,000 110,602,785 165,690,570 210,738,355

276,956,140


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Cash Budgeting

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52

February March April May

Cash Receipt:

Forecast Sales

Jam Alfabet (40)

Keset Sendal (100)

Keset Luar (100)

Bedsheet King (50)

Bedsheet Queen (45)

Total Sales

55,000,000

2,800,000

8,400,000

19,500,000

14,300,000

100,000,00

0

55,000,000

2,800,000

8,400,000

19,500,000

14,300,000

100,000,000

45,000,000

2,200,000

6,600,000

16,500,000

11,700,000

82,000,000

65,000,000

3,300,000

9,900,000

24,000,000

18,200,000

120,400,000

Other Income

Salary Income

Interest Income

Total Other Income

10,510,000

148,488

10,658,488

10,510,000

148,488

10,658,488

10,510,000

148,488

10,658,488

10,510,000

148,488

10,658,488

Bank Loan29,697,500

TOTAL CASH RECEIPTS140,355,98

8

110,658,48892,658,488 131,058,488

Less: Cash Disbursement :

Purchases (Down Payment)

Jam Alfabet

Keset Sendal

Keset Luar

Bedsheet King

Bedsheet Queen

Total Purchase

19,800,000

2,497,500

4,620,000

4,875,000

3,575,000

35,367,500

0

0

1,815,000

4,875,000

3,575,000

10,265,000

0

0

2,722,500

4,125,000

2,925,000

9,772,500

0

0

0

6,000,000

4,550,000

10,550,000


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Packaging

Jam Alfabet

Keset Sendal

Keset Luar

Bedsheet King

Bedsheet Queen

Total Packaging

2,750,000

140,000

420,000

975,000

715,000

5,000,000

2,750,000

140,000

420,000

975,000

715,000

5,000,000

2,250,000

110,000

330,000

825,000

585,000

4,100,000

3,250,000

165,000

495,000

1,200,000

910,000

6,020,000


87/90

Payment of A/P :

Jam Alfabet

Keset Sendal

0

0

46,200,000

2,497,500

0

0

0

0


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Keset Luar

Bedsheet King

Bedsheet Queen

Total A/P

2,310,000

4,875,000

3,575,000

10,760,000

2,310,000

4,875,000

3,575,000

59,457,500

1,815,000

4,125,000

2,925,000

8,865,000

2,722,500

6,000,000

4,550,000

13,272,500

Operating Expenses

General &Administrative

Expense

Nota Penjualan

Stempel

Materai

Total General and

Administrative Expense

Marketing Expense

Banner

Poster

Flyer

Catalogue

Sticker

Website

Product Samples

Total Marketing Expense

100,000

80,000

60,000

240,000

540,000

200,000

750,000

1,200,000

200,000

500,000

250,000

3,640,000

Transportation Expense 500,000 500,000 500,000 500,000

Packaging

Salary Expense

Total Operating Expense

Interest Expense

10,510,000

14,890,000

280,702

10,510,000

11,010,000

280,702

10,510,000

11,010,000

280,702

10,510,000

11,010,000

280,702

Principal Payment 29,697,500

TOTAL CASH

DISBURSEMENT

Net Cash Flow

Ad

d:

Be

gi

nni

ng

Ca

sh

En

di

ng

Ca

sh


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bucks_business plan finish

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